Will Market's Fed Rally Continue?

The stock market rallied midday Wednesday following the Federal Reserve's announcement of more bond buying, but will it continue?

"This does look like it's going to be a long-term prognosis," OptionMonster's Pete Najarian said on "Fast Money."

Specifically, the Fed's bond-buying and continued low interest rates would benefit the financial sector, he added.

The rally in stocks suggested that Washington lawmakers would strike a budget deal to avoid the so-called "fiscal cliff," which would trigger tax hikes and automatic spending cuts on Jan. 1, Stephen Weiss of Short Hills Capital said.

"You're looking for talk of a grand bargain at this point," he said. "You've increased the risk dramatically to your portfolio with the way the market's risen."

Rosecliff Capital's Mike Murphy said the midday pop in the S&P 500 to 1,435 was significant and set up for a new level of resistance at 1,450.

The Fed action signaled that it was safe to get back into stocks, he added.

"I think the market continues to rally."

Trader disclosure: On Dec. 12, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Mike Murphy is long AAPL; Mike Murphy is long TGT; Enis Taner is long GS; Enis Taner is long AAPL 1X2 CALL SPREAD; Enis Taner is long GOOG PUT BUTTERFLY; Enis Taner is long SPY PUTS; Enis Taner is short XRT**; Pete Najarian is long AAPL; Pete Najarian is long BAC CALLS; Pete Najarian is long INTC CALLS; Pete Najarian is long RIMM CALLS; Pete Najarian is long SBUX; Pete Najarian is long FB; Pete Najarian is long MSFT; Pete Najarian is long LLY; Steve Weiss is long BAC; Steve Weiss is long JPM; Steve Weiss is long C; Steve Weiss is long FXI. (**Corrected.)